The rise of D2C e-commerce presents challenges and opportunities for companies. To reap the benefits of this fast-growing area, businesses must be willing to make management shifts that allow them to overcome challenges and stay competitive in an increasingly connected and online world. Although making these changes can be costly, the rewards can be substantial. It is important for D2C to be put on the leadership agenda and for companies to identify the value at stake and the opportunity to improve across management shifts to remain competitive.
One of the mechanisms to promote the growth of D2C e-commerce is through enhancing the customer experience. For an e-commerce channel to be economically viable, it must rely on a set of core customers. To drive recurring long-term relationships with customers, businesses can change their business model to subscription, design loyalty programs that offer real value in return for loyalty, and establish brand communities to connect with customers on a social and emotional level. Successful e-commerce businesses have adopted scalable solutions for CX, ranging from mobile and web experience design to driving personalization leveraging predictive models.
To succeed in D2C e-commerce, top leadership must be fully committed to its prioritization. It is important for companies to clarify the strategic role and ambition of D2C, including target customer segments for D2C versus other channels, and distinct guardrails for the value proposition that needs to be designed and delivered. By identifying the value at stake and the opportunity to improve across management shifts and enhancing the customer experience, companies can thrive in the D2C e-commerce landscape.